PARIS—Network-gear maker Alcatel-Lucent SA said Thursday it expects higher sales and faster cost-cutting to boost its turnaround plan, after reporting a narrower loss in the third quarter on both lower costs and an uptick in revenue.

The Franco-American maker of everything from wireless antennas to submarine cables said it would exceed its target to cut €300 million ($412 million) in fixed costs by the end of 2013. It will also see a...